Wine Industry Report

The board of directors (the “Board”) of Dynasty Fine Wines Group Limited (the “Company”), together with its subsidiaries, (collectively the “Group”) hereby announces that with effect from 1 January 2006 (1 ) Mr. He Xiuheng will resign as an executive director and the chairman of the Board, and Mr. Gao Xiaode will resign as an executive director and the general manager of the Company; (2) Mr. Bai Zhisheng, an executive director, will be appointed as the chairman and general manager of the Company.

Mr. Bai Zhisheng, aged 50, was appointed as a non-executive director of the Company in August 2004 and then an executive director taking up the function of formulating and managing the investment strategies of the Group. He has been the deputy oeneral manager of Tianjin Agricultural Cultivation Group Company since 1991 and subsequently he is the general manager in 2005. He is also a qualified senior economist. Mr. Bai graduated in 1984 from the undergraduate programme of Peking University where he studied in international polities. He completed a postgraduate course specializing in law at the School of Central Committee of the Communist Party in 1998. Mr. Bai has solid experience in corporate management for over nine years.

As at the date of this announcement, Mr. Bai has no other interest in issued share capital of the Company, except for the following beneficial interest in the underlying shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance.

Interest in underlying shares:

Share options granted: 1,100,000. Exercise price per share: HK$3.00 Exercise period up to 26 January 2015

Mr. Bai will be entitled to HKS1,836,000 per year plus a discretionary bonus and will enter into a new service agreement with the Company for an initial term of three years and will continue thereafter until terminated by either party to the other with not less than three months’ notice in writing in accordance with the terms of the agreement. The fee is determined by the Board having regard to his duties and responsibilities. Save as disclosed above, he does not have any relationship with any other directors, senior management, substantial or controlling shareholders of the Company.